BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1647
                                                                  Page  1

          Date of Hearing:   April 23, 2003

                           ASSEMBLY COMMITTEE ON EDUCATION
                               Jackie Goldberg, Chair
                AB 1647 (Wiggins) - As Introduced:  February 21, 2003
           
          SUBJECT  :   Prefabricated materials in school facility  
          construction

           SUMMARY  :   Requires the Department of General Services (DGS) to  
          study the use, and its approval, of prefabricated materials in  
          the construction of public schools and report its findings,  
          including but not limited to, an inventory of all types of  
          prefabricated materials submitted to DGS for approval, to the  
          Legislature by January 1, 2005. 

           EXISTING LAW  

          1)Establishes various school construction health and safety  
            requirements, including, but not limited to, certain  
            requirements that DGS approve construction plans for  
            compliance with prescribed seismic safety and fitness-for-use  
            requirements; and,

          2)Authorizes DGS to adopt regulations for safety and design of  
            factory-built buildings for use as school buildings, and to  
            approve or reject plans and specifications submitted by  
            manufacturers of factory-built buildings.

          3)Requires that prevailing wage be paid to employees of public  
            works projects and allows the director of the Department of  
            Industrial Relations (DIR) to determine what constitutes a  
            public works project. 

           FISCAL EFFECT  :  Unknown.

           COMMENTS  : 

           Precenditial Decision #2002-64  .   On April 10, 2003, the director  
          of DIR determined that prevailing wages must be paid to the  
          employees of contractors or subcontractors engaged in the  
          off-site fabrication or prefabrication of items specifically  
          produced for public works projects.  

          Existing state law requires that prevailing wage be paid to  








                                                                  AB 1647
                                                                  Page  2

          employees of public works projects and provides the director of  
          DIR with the ability to determine what constitutes a public  
          works project.  Therefore, by determining that the construction  
          of certain off-site fabricated or prefabricated materials as  
          public works projects, employees involved in the fabrication or  
          prefabrication of these materials must be paid prevailing wages.

           Arguments in support  .  According to the author, "On April 11,  
          2003, the director of DIR issued Precedential Decision #2002-064  
          which required that prevailing wages be paid to the employees of  
          contractors and subcontractors engaged in the off-site  
          fabrication or prefabrication of items produced for public works  
          projects.  The director made the determination based on a  
          situation at Cuesta College in San Luis Obispo where the a  
          contractor responsible for the heating, ventilation, and  
          air-conditioning systems on a project did not pay the employees  
          prevailing wage even though the workers fabricated the items  
          specifically for the public works project.  

          "Consequently, with the passage of the school bond, many public  
          works projects similar to the project at Cuesta College will  
          soon go out to bid with the likelihood that the plans submitted  
          and approved by DGS, contain off-site fabricated or  
          prefabricated items designed especially for the project.   
          Without knowledge of materials approved by DGS, some school  
          construction projects may be in violation of prevailing wage  
          requirements.  Therefore, this measure would require DGS to  
          create a list of all approved fabricated and prefabricated  
          materials used in school construction sites so that all  
          participatory and regulatory parties better understand the scope  
          and impact of the recent determination." 

           REGISTERED SUPPORT / OPPOSITION  :   

           Support 
           
          None on file

           Opposition 
           
          None on file
           
          Analysis Prepared by  :    Mavonne Garrity / ED. / (916) 319-2087